Union Budget 2017: Taxation Reforms

Union Finance Minister Arun Jaitley presented the Union Budget 2017. The following taxation reforms were proposed by FM Jaitley.

The New Tax Slabs proposed in Budget 2017

Following are key highlights

• The Individuals tax rates Slashed  on income from 2.5 lakh to 5 lakh  reduced to 5 % instead of 10%

• 0% tax liability on income up to 3 lacs

• 10% Surcharge on individuals with income between 50 lakh to 1 Crore

• 15% surcharge on individuals with income of 1 cr and more

• No cash transaction on  above 3 lacs and more  to reduce black money

• Holding period for long-term capital gains for immobile assets reduced from 3 years to 2 years; base year for indexation to be 2001.

• A single one-page form for filing IT returns for taxable income up to 5 lakh rupees except one for business

• Time period of revising tax return to be reduced to 12 months

• Income tax changes announced for small companies with an annual turnover of 50 crore. They will now to pay 25% instead of 30% and save 5 %

• Maximum amount of cash donation a political party can receive to be 2000 rupees from any one source

Benefit of New Tax system